Market Outlook for the week

Worse than expected corporate earnings from several of the big U.S players started to dampen the recent bully rally. This is evident in last Thurs & Fri sharp close down on our local market. More mixed earnings results from the U.S, combined with reports of the spreading credit problem in the mortgage and corporate lending markets contributed to very sharp declines across all major indexes. The Dow Jones Industrial average experienced its worst week in five years and several of the other indexes have fallen below their long-term moving averages for the first time in several months. However, U.S GDP rose at a better than expected pace which indicates that the housing problem may not be that serious after all.

Market expect to open lower in early part of the week but should see some climb towards the end of the week. Trade with caution. Recommend hold on stocks.